Wales set to become AI powerhouse with billions in investment and thousands of Jobs
Wales set to become AI powerhouse with billions in investment and thousands of Jobs
Subscribe to the Businessin Wales daily newsletter for FREE here.
Wales is on track to receive billions of pounds in investment and see the creation of thousands of new jobs as the UK Government confirms it will be home to one of the country’s new AI Growth Zones.
The AI Growth Zones initiative aims to accelerate the development of key infrastructure like data centres, critical for training and deploying powerful AI models. These zones are expected to spur economic growth by attracting private sector investment and creating high-skilled, permanent roles, alongside a surge in construction jobs as projects break ground.
“From the coalmines of the Valleys to Swansea’s mantra of ‘Copperopolis’, Welsh trailblazers were the beating heart of the industrial revolution. AI is this generation’s next great industrial leap, so who better to help drive that change than a nation which has always been a by-word for innovation,” said Kyle.
“While the Spending Review set out a £2 billion commitment which will cement our position as a global leader in AI for the long-term, these Growth Zones will revitalize communities in the here and now, unlocking fresh investment and new opportunities for those that have been left out in the cold for too long. That’s how we’re putting our Plan for Change into action.”
The news comes alongside the release of the UK Government’s Compute Roadmap, a strategic plan to expand the country’s AI processing capabilities twenty-fold. The initiative includes £1 billion in funding to scale up the UK’s AI Research Resource (AIRR), which will be among the most powerful in the world once complete. The goal is to provide the infrastructure necessary for AI innovations across sectors such as healthcare, climate science, and public services.
Wales is seen as a prime candidate for these developments due to its existing tech ecosystem, availability of suitable industrial sites, and strong renewable energy targets. The Welsh Government has set a goal for 100% of the country’s electricity needs to be met by renewables within the next decade—providing a clean energy foundation to power data-intensive AI operations.
“Wales is already home to a thriving and growing tech industry and this investment in at least one AI Growth Zone for Wales is a vote of confidence in the Welsh economy and testament to the skills and potential of our workforce,” said Jo Stevens, Secretary of State for Wales.
“This is another significant step forward in our central mission to kickstart economic growth, create well-paid jobs and unlock opportunity in the industries of the future.”
Several sites across Wales have already been flagged through an expression of interest process that began in February, though specific locations and rollout timelines are still to be confirmed.
Among the major corporate players investing in the region is Vantage Data Centers, an American firm that plans to build one of Europe’s largest data centre campuses in Wales. The company has pledged more than £12 billion in investment and the creation of over 11,500 jobs across the UK.
The AI Growth Zones will prioritise regions with strong power infrastructure and an ability to support next-generation energy solutions like small modular nuclear reactors. Deindustrialised areas are being seen as especially well-suited, given their existing infrastructure and redevelopment potential.
Want more from Businessin Wales? Why not follow us on our socials
Listen to the Businessin Wales podcast
